The Department of Labor has decided to delay the implementation of the Tip Regulations Under the Fair Labor Standards Act (FLSA) until April 30, 2021. This decision follows a directive for a "Regulatory Freeze Pending Review" to ensure that the rule's legal, policy, and factual issues are fully assessed. Many stakeholders during a public comment period supported the delay, expressing concerns that the rule might have complicated effects on workers, including tip credit application and compliance costs for employers. The decision also allows time to address a legal complaint arguing that certain aspects of the rule are contrary to existing laws.
Simple Explanation
The government decided to wait a little longer before making some new tip rules for workers and businesses to start, so they can make sure everything about the rules is okay and fair. People worry about how the rules might affect everyone, and this extra time lets them check everything again.